Retail Payment Systems
In the OIC Member Countries
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companies, factoring companies and consumer finance companies, as well as domestic
regulations. Several memorandum of understanding (MoU) between those institutions provide
the coordination, share of information, and cooperation in order to maintain financial stability
as well as managing and monitoring systemic risk.
Banking Law No. 5411 enacted in March 2011 regulates the principles and procedures to
ensure confidence and stability in financial markets, the efficient functioning of the credit
system, and the protection of the rights and interests of depositors. Law No. 6493 (2013) on
Payment and Security Settlement Systems, Payment Services and Electronic Money
Institutions provides the regulation of the procedures and principles of payment and
security settlement systems, payment services, payment institutions and electronic money
institutions. In accordance with the European Union accession process, eventually the full
range of EU regulations, including those with regard to electronic money, are supposed to be
enacted into Turkish law.
There are 47 banks operating in Turkey: 13 investment banks, 24 commercial banks, four
participation banks and six branches of foreign banks. There are also 45 representative offices
of foreign banks (HSBC, 2013). The country’s four largest banks control over 50% of the
banking sector’s total assets. Three of Turkey’s seven largest banks – TC Ziraat Bankası,
Halkbank and Vakifbank – are state-owned. Four investment banks are also state‑owned.
Approximately 29% of the banking sector’s total assets are state-controlled. Foreign banks
including Citibank, Deutsche Bank and ING Bank are active in Turkey.
Foreign banks accounted for approximately 13% of the country’s total banking assets at the
end of September 2012 (HSBC, 2013). These included 11 commercial banks and four
investment banks. Turkey’s largest majority-owned foreign bank is Denizbank, acquired by
Belgium’s Dexia Bank in 2006.
Large Value Payment Systems
TIC-RTGS, Turkey’s national real-time gross settlement (RTGS) system is operated by the
Central Bank. RPS (Retail Payment System), an RTGS system for retail payments launched in
December 2012, is operated by the Central Bank. Ankara and Istanbul Interbank Clearing
Houses (ICHs) operate together as a deferred net settlement system for cheque payments.
BKM (Bankalararası Kart Merkezi – Interbank Card Centre) is a deferred net settlement system
operated by its members. The Central Bank also operates a giro system, primarily used by
non‑TIC ‑RTGS participants, which processes credit transfers between its 21 branches on a
real-time basis. Cross-border payment instructions are routed via SWIFT and settled through